Clueless about bitcoin? Here's your cryptocurrency crash course2:06

You've probably heard of bitcoin turning people into overnight millionaires, but are unsure how or if you could be part of the bitcoin wave. Here's what you need to know.

March 2nd 2018

17 days ago

/display/newscorpaustralia.com/Web/NewsNetwork/Network News/World/

Bitcoin and scams? Picture: Luke Macgregor/BloombergSource:Bloomberg

THE Australian Tax Office has warned scammers are impersonating its officers and demanding bitcoin or other cryptocurrencies as payment for fake tax debts.

That’s not to be confused with real tax debts for real cryptocurrency investors, who face expanded powers under new anti-money laundering legislation if they attempt to cheat their obligations.

“It’s only a small number so far,” said ATO Assistant Commissioner Kath Anderson. “We only became aware of it towards the end of 2017, it’s been about $50,000 paid in bitcoin to scammers that we’re aware of at this stage, and we’re expecting it to grow.”

She said victims were being directed to made the payments using the growing number of bitcoin ATMs around the country, typically by phone call but also by SMS and email. “Scammers are always adapting their methods to maximise their chance of being able to pick your pocket,” she said.

Last year, the ATO received more than 80,000 reports of scams with nearly $2.4 million lost. More than $900,000 of that was in the form of iTunes gift cards — nearly one third of victims — prompting Apple to put warning labels in place.

“We’re hoping that will mean less people succumbing to that particular tactic,” Ms Anderson said. Fraudsters will also demand direct deposits into third-party bank accounts or prepaid Visa gift cards.

“Unfortunately it was inevitable that scammers would target cryptocurrency given its current popularity and anonymity. Cryptocurrency operates in a virtual world, and once the scammers receive payment, it’s virtually impossible to get it back.”

While the ATO does make legitimate calls, as well as sending emails and text messages in some circumstances, Ms Anderson said the best thing to do if unsure was to hand up and ring back on 1800 008 540.

“Most people know if they’ve got a tax debt, so if they weren’t expecting any contact from the ATO, be suspicious,” she said. “The best thing is to hang up and ring the scam line to confirm whether or not it is a scam.”

She added never to share information such as your Tax File Number with scammers.

“Make sure you keep your personal information secret. It’s like the keys to your identity and needs to be guarded carefully.”

PROTECT FAMILY AND FRIENDS FROM IDENTITY CRIMES

• Know what to protect: Personal information that could be used by scammers to impersonate someone can include their full name, date of birth, current address, bank account numbers, credit card details, tax file number, drivers licence or passport details, and any passwords.

• Remind them to keep their personal information safe and secure: If personal information is stolen it can be very difficult to get back. It’s best to store things like a tax file number or birth certificate somewhere safe and secure — for example, don’t carry it around in a wallet or handbag or saved on a phone.

• Warn them if they share too much on social media: Scammers can use information published on social networking sites to steal identities. If you see someone sharing personal information online, remind them that they could be putting themselves at risk of targeted attacks. It’s also a good idea to make sure profiles are set to private, and to be cautious about which friend requests to accept.

• Be suspicious of requests for personal information: If you notice that your family and friends have received a request for their personal information, tell them to treat the request with caution. Scammers can be believable and will sometimes quote personal information to sound authentic, so if you hear that someone is asking for personal information, consider the possibility that it may be a scam. To check if a call, email, SMS is from the ATO call us on 1800 008 540 to confirm.

• Know legitimate ways to make payments: Scammers may use threatening tactics to trick their victims into paying false debts in prepaid gift cards or by sending money to non-ATO bank accounts. To check that a payment method is legitimate, we have a list which can found on our website that outlines methods when dealing with us, visit ato.gov.au/howtopay